Fox Resources identifies three iron ore prospects

Australian diversified base metals explorer and producer, Fox Resources, has identified three new iron ore prospects near its Mt Oscar iron ore project, in the Pilbara of Western Australia.

The new prospects, Mt Carla, Mt Kristie and Mt Catherine form part of the Cleaverville geological formation.

The formation is home to the 1.6 billion tonne Cape Lambert Magnetite project owned by Cape Lambert Iron Ore and in the process of being sold for $400 million to China Metallurgical Group Cooperation.

The Mt Carla prospect is approximately 10km east of the Miaree Magnetite Project where miners, Iron Mountain and Red River, have identified iron mineralisation hosted within the Miaree Magnetite Trend.

Last year, Red River undertook rock chip sampling and demonstrated that the Miaree Magnetite Trend contains the potential to host direct shipping grade haematite ore.

The new prospects have been identified by high resolution aeromagnetics and could have the potential for both haematite and magnetite iron ore.

Fox Resources expects to undertake geological surface mapping, rock chip sampling and density/gravity surveys on all three new prospects in the September quarter of 2008.